Grant Family Farms closes, files for bankruptcy

Jan. 5, 2013

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After 61 years of farming, Grant Family Farms has closed and filed for bankruptcy, citing crop damage and financial hardships. A sign marking the farm is pictured north of Waverly on Saturday. / Rich Abrahamson/The Coloradoan

After 61 years of farming, Grant Family Farms has closed and filed for bankruptcy, citing crop damage and financial hardships. A sign marking the mark is pictured north of Waverly Saturday January 5, 2013. / Rich Abrahamson/The Coloradoan

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WELLINGTON — After 61 years of farming, Grant Family Farms has closed and filed for bankruptcy, citing crop damage and financial hardships.

Grant Family Farms owner Andy Grant said that having fallen on hard times, he was forced to file for Chapter 7 bankruptcy. The business is an organic Community Supported Agriculture, or CSA, farm.

Grant, who is trying to figure out the next steps, declined to go into details about what led to the filing, instead referring to a news release, but did indicate that there will be more “interesting parts to this story.”

One thing Grant did make clear was that this was not the end for him.

“We are farmers; we will figure out a way,” he said. “We have farmed here in Colorado for 61 years; we will figure out a way.”

When the farm closed last month, it laid off more than 50 employees, Grant said.

Meg Bucklin, Grant’s CSA membership coordinator, confirmed Saturday afternoon that the farm shut down all operations under the Chapter 7 filing, which requires the company to liquidate to settle its debts.

Bucklin said the farm’s CSA had around 4,500 members, the largest CSA in the country. She added that the business is hopeful that the CSA will resume sometime this year.

The farm has been struggling financially for several years due to ineligibility for crop insurance and crop damage caused by hail storms and drought, according to the news release, which also stated that a spinach recall compounded the farm’s financial situation, leading to the bankruptcy filing.

“At this time, Grant Family Farms is hesitant to offer any specifics with regard to tomorrow. It can say that beyond Chapter 7, nothing is set in stone — and it is important to the Farm that it doesn’t churn the cogs in the rumor mill,” the release stated.

The bankruptcy, filed Dec. 28, lists the farm’s estimated assets between $500,001 and $1 million, with estimated liabilities of $1 million to $10 million. The farm’s creditors are listed in the 200 to 999 range.

Grant Farms is under court order to submit its statement of financial affairs on Jan. 11, which could provide more insight into where the farm sits financially. There is a creditors meeting set for Jan. 22, according to court records.

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Grant Family Farms previously filed Chapter 11 bankruptcy in April 2006 and February 2007.

In the 2006 filing, Grant listed its assets at $1 million to $10 million and its debts the same, indicating that in the past six years, the value of farm has declined while its debts have remained the same. The case was closed in September 2009.

The 2007 case was dismissed and closed in August 2008.

Grant’s CSA members and fans of the local farm expressed their sympathy Saturday as news of the bankruptcy hit social media. On the Coloradoan’s and the farm’s Facebook pages, fans voiced their dismay at the news.

While Grant declined to discuss the filling Saturday, previously he has alluded to difficulties with the farm.

In July 2011, Grant Family Farms, as well as farms across the state, were having difficulty filling jobs. Grant Family Farms sent work requests to the Colorado Department of Labor and Employment, or CDLE, for 50 employees, with zero results, Grant said at the time. Typically the farm employed 300 field workers a year, but had only around 200 in 2011.

At that time, Grant said the losses to the farm would be “substantial” if it could not get more workers.

Grant Family Farms is located just south of the Wyoming border. The farm claims to be the first farm certified organic by the state of Colorado and helped develop the state laws for organic certification.

The farm was started by Lewis Grant, a CSU professor, in 1953 and his son Andy Grant. In the 1960s, the two started growing vegetables that led to the 2,000-acre farm today. In 1974, The Grants turned to organic growing. The main crops Grant produces are: cabbage, lettuce, spinach, summer greens, herbs, broccoli, onions, cauliflower, tomatoes, peppers and squash, according to its website. The CSA also raises chickens for eggs and meat.

Here is the press release issued by Grant Family Farms on Saturday morning:

“Despite all best efforts to the contrary, and along with many other organic farmers in the United States, Grant Family Farms northwest of Wellington has been struggling financially over the last several years. Ineligibility for crop insurance coupled with millions of dollars in damage from hail storms and drought – not to mention a massive spinach recall, has left the farm in a financial situation that it’s been unable to overcome. As a result, on Dec. 28, Grant Family Farms declared Chapter 7 bankruptcy.

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“First and foremost, Grant Family Farms wants to thank the community for their support and loyalty to the farm throughout the years. With this gracious understanding, the Farm would like to take this opportunity to be as open and honest as possible with the community about the current situation.

“Grant Family Farms is confident that some things are worth saving – and believes that this community supported farm is one of them. The Farm is working hard and is hopeful that it will emerge from this disappointing situation better than it went in.

“Grant Family Farms has been farming in Colorado for 61 years. It was, proudly, the first Certified Organic Farm in the state – in addition to being instrumental with helping Colorado create the process of organic certification and developing the laws that emerged as a result. Throughout its history, Grant Farms has developed an effective local food system with grains, animals, and veggies – on a community supported and wholesale level alike – in addition to building the largest CSA in the nation. The Farm recognizes these distinctions as being a direct result of the amazing support it’s received, and continues to receive, from this amazing community – and it is eternally grateful to the community for that.

“In many ways, the Farm has continued to improve and, most certainly, continues to be committed to the CSA community – the life and breath of this farm. The Farm truly hopes that it can count on the community’s continued support and generous patience and it makes this transition towards the future.

“At this time, Grant Family Farms is hesitant to offer any specifics with regard to tomorrow. It can say that beyond Chapter 7, nothing is set in stone – and it is important to the Farm that it doesn’t churn the cogs in the rumor mill. But, please know that the Farm’s CSA members and community will be the first to know when there is any additional information to share. The Farm is as hungry for conclusions as the community is for answers – and it will continue to keep information posted in the timeliest manner possible. The Farm anticipates speculation from a variety of sources, but wants the community to know that this is the voice of the Grant Family, the Farm, and the CSA team.

“Once again, Grant Family Farms wants to extend a gracious thank you to the community for its continued support, understanding, and patience as it traverses this most difficult path. While the Farm looks forward with hope to what the future might bring – it does so with the anticipation that our community and its amazing CSA family, will be there with them.